Stock dividends distributed appear in which,if any,section of the cash flow statement?
A) financing and investing activities section
B) operating and investing activities section
C) operating activities section only
D) The distribution of a stock dividend does not appear anywhere in the cash flow statement.

Question

Quizplus · Accepted Answer

The distribution of stock dividends does not affect the cash balance of a company as it involves the transfer of stocks from retained earnings to the shareholders' equity account. Therefore, it does not appear in any section of the cash flow statement, which only reports on transactions that involve actual cash flows.

Stock Dividends Distributed Appear in Which,if Any,section of the Cash